Rent Agreement, C of O, Other Business Instruments Must Carry Stamp Duty Henceforth – FIRS
The Federal Inland Revenue Service (FIRS) has asked Nigerians to ensure that henceforth, all documents regarding their rent or lease agreements for homes or offices, Certificate of Occupancy (C of O) and other business instruments will be subject to authentication with the new FIRS Adhesive Stamp Duty.
In a statement by FIRS Director of Communication and Liaison Dept, Mr Abdullahi Ismaila Ahmad in Abuja on Thursday, this has become necessary in order to give these instruments the force of law and make them legally bidding on all parties involved in such transactions.
The new FIRS Adhesive Stamp Duty was launched in Abuja on Tuesday at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.
FIRS Executive Mr. Muhammad Nami, said in statement that “chargeable transactions under the Stamp Duties Act as amended in the Finance Act 2019 are in two categories – Fixed Duty Instruments and Ad-Valorem Instruments.”
According to him, the chargeable transactions in the Fixed Duty Instruments category include, Power of Attorney (PoA); Certificate of Occupancy (C of O); Proxy form; Appointment of Receiver; Memorandum of Understanding (MoU); Joint Venture Agreements (JVA); Guarantor’s form; and Ordinary Agreements Receipts.
Nami said, “While ad-Valorem Instruments chargeable under the Stamp Duties Act are Deed of Assignment; Sales Agreement; Legal Mortgage or Debentures; Tenancy or Lease Agreements; Insurance Policies; Contract Agreements; Vending Agreement; Promissory Notes; Charter-Party; and Contract Notes.
“Stamp duty is basically charged in two forms, either ad valorem where duty payable is a percentage of the consideration on an instrument or a fixed sum irrespective of the consideration on dutiable instrument or document.
“The FIRS enjoins members of the public to make sure that any of the above-listed Instruments they give or receive in the course of their business or official transactions have the new FIRS Adhesive Stamp Duty affixed or stamped on them to authenticate or legalize such Instruments,” he stressed.
The new FIRS Adhesive Stamp Duty, according to the statement is available in all FIRS offices nationwide.